May 4, 2022
Farm Bill Primer: Beginning and Underserved Producers
Food and agriculture policy in the United States provides
many SDFRs. USDA data indicate that SDFRs excluding
support for farms and ranches operated by beginning, small
non-Hispanic White women accounted for about 9% of all
and limited resource, and historically underserved farmers
farms, 10% of all farmed acres, and 8% of sales.
and ranchers. Although these producers generally are
eligible for programs administered by the U.S. Department
of Agriculture (USDA), recent farm bills have provided
targeted support addressing their needs. The 2018 farm bill
(P.L. 115-334) reauthorized and expanded existing support
and established additional support for beginning, veteran,
and socially disadvantaged producers. In addition, Congress
has provided additional targeted support for these producer
groups in recent Agriculture appropriations and ad hoc
emergency spending laws. (See text box for selected
descriptions in the U.S. Code.)
Beginning and Underserved Producers
Beginning, veteran, limited resource and smaller-sized, and
historically underserved farmers and ranchers represent a
diverse, growing, and recognized share of all U.S.
agricultural producers. This includes socially disadvantaged
farmers or ranchers (SDFRs) or producers who are a
member of a group whose members have been subjected to
racial, ethnic, and gender discrimination.
Beginning and veteran farmers and ranchers are those who
have operated a farm or ranch for not more than 10 years
and in the case of veterans, also have served in the Armed
Forces. Limited-resource farm households are those with
two consecutive years of low farm sales and low household
income, defined by USDA as direct or indirect gross farm
sales of not more than $180,300 (FY2020) and household
income below the national poverty line for a family of four.
The most recent 2017 Census of Agriculture reports there
were 516,000 farms where the “principal producer is a new
and beginning producer,” representing about one-fourth of
all U.S. farm operations. Agricultural products sold by
beginning producers totaled $60.4 billion or about 15% of
total U.S. farm-level sales in 2017. Land in farms operated
by beginning producers accounted for about 16% of all land
in farming. These data may include some veteran, small and
limited resource, and historically underserved producers.
USDA estimates about 7% of farm households were
classified as limited-resource operations in 2016. Limited
resource operations tend to be smaller-sized, operated by
older or retired persons, or have lost money farming
(measured on a cash basis). USDA reports more than
370,000 producers who either served or are serving in the
military, account for 11% of all U.S. producers in 2017.
SDFRs (including women, regardless of race and ethnicity)
accounted for about 30% of all U.S. farm operators, 21% of
all farmed acres, and 13% of the value of all agricultural
sales in 2017, according to Government Accountability
Office analysis. Non-Hispanic White women account for
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Farm Bill Primer: Beginning and Underserved Producers
Selected Terms and Definitions
American Indian Tribal colleges and universities), and
Hispanic-serving colleges and universities. Some, but not
Beginning farmer or rancher—a “term as defined by the
all, SDFR-focused programs cover women. Many USDA
Secretary” whereas a qualified beginning farmer or rancher
programs relating to commodity support, credit, noninsured
means “an applicant ... who is eligible for assistance...who has
crop assistance, and rural development that support SDFRs
not operated a farm or ranch, or who has operated a farm or
apply the SDFR definition that includes women. In contrast,
ranch for not more than 10 years” among other requirements
some USDA programs relating to grants, conservation, and
(7 U.S.C. §1991(a)(8) and (11)). For the purposes of crop
energy tend to reference the SDFR definition that excludes
insurance, a beginning producer is “a farmer or rancher who
non-Hispanic White women.
has not actively operated and managed a farm or ranch with a
bona fide insurable interest in a crop or livestock as an
Farm Bill Programs and Provisions
owner-operator, landlord, tenant, or sharecropper for more
Title XII, Subtitle C, of the 2018 farm bill (Historically
than 5 crop years...” (7 U.S.C. §1502(b)(3)).
Underserved Producers) specifically addresses USDA
Underserved producer—“an individual (including a member
support for beginning, veteran, and socially disadvantaged
of an Indian Tribe) that is - (I) a beginning farmer or rancher;
producers. The subtitle expands training and outreach to
(II) a veteran farmer or rancher; or (III) a socially
these producer groups under the Farming Opportunities
disadvantaged farmer or rancher” (7 U.S.C. §1508(a)(7)(A)(i )).
Training and Outreach program, merging two formerly
Veteran farmer or rancher—“a farmer or rancher who has
separate USDA programs, the Beginning Farmer and
served in the Armed Forces (as defined in section 101(10) of
Rancher Development Grant Program and the Outreach and
title 38) and who - (A) has not operated a farm or ranch; (B)
Assistance to Socially Disadvantaged and Veteran Farmers
has operated a farm or ranch for not more than 10 years; or
and Ranchers (the “2501 Program”). The subtitle also
(C) is a veteran (as defined in section 101 of that title) who
provides new support and grant funding for urban
has first obtained status as a veteran (as so defined) during the
agricultural producers and supports Tribal and veteran
most recent 10-year period” (7 U.S.C. §2279(A)(7)). For the
producers, among other changes. These, along with
purposes of crop insurance, a veteran producer is “a farmer
provisions in other farm bill titles, expand on existing
or rancher who ... has operated a farm or ranch for not more
USDA programs and policies initiated in previously
than 5 years” (7 U.S.C. §1502(b)(14)).
enacted omnibus farm bills for beginning, veteran, and
socially disadvantaged producers.
Socially disadvantaged farmer or rancher—“a farmer or
rancher who is a member of a socially disadvantaged group”
Considerations for the Next Farm Bill
where, depending on the program, a socially disadvantaged
Numerous bills introduced in the 117th Congress would
group means either “a group whose members have been
expand support for beginning, veteran, and underserved
subjected to racial or ethnic prejudice because of their
agricultural producers. Congress might consider these or
identity as members of a group without regard to their
other options in debate on the next farm bill. Some of these
individual qualities” (7 U.S.C. §2279(a)(6), or “a group whose
issues have been discussed in congressional hearings.
members have been subjected to racial, ethnic, or gender
prejudice because of their identity as members of a group
Several bills seek to address historical discrimination and
without regard to their individual qualities” (7 U.S.C.
racial inequities toward some producer groups in accessing
§2003(e)(1)).
USDA services and assistance (e.g., through loan
Indian Tribe—“a person who is a member of an Indian tribe”
forgiveness, targeted assistance, and/or instituting reforms
where an “Indian Tribe” means “any Indian tribe, band, nation,
at USDA; H.R. 1393/S. 300, H.R. 4169, H.R. 4421, S.
or other organized group or community, including any Alaska
2332, S. 278). Other bills would focus on giving Indian
Native vil age or regional or vil age corporation as defined in
Tribes more control over administration of supplemental
or established pursuant to the Alaska Native Claims
nutrition assistance program benefits (H.R. 6334/S. 2757)
Settlement Act (85 Stat. 688) [43 U.S.C. 1601 et seq.], which
and other services (H.R. 4705/S. 2492, H.R. 4504, H.R.
is recognized as eligible for the special programs and services
1047, H.R. 3370, H.R. 1721). The American Rescue Plan
provided by the United States to Indians because of their
Act (P.L. 117-2) has a farm loan debt forgiveness provision
status as Indians” (25 U.S.C. §5304(d)-(e); Indian Self-
for SDFRs, but various courts blocked implementation
Determination and Education Assistance Act (P.L. 93-638)).
because of how it directed benefits based on race. The
Build Back Better Act (H.R. 5376) would reorient the debt
USDA program eligibility depends on specific and
forgiveness based on economic criteria instead of race and
sometimes different definitions. For example, a beginning
ethnicity.
or veteran producer generally is defined as having engaged
in farming for no more than 10 years, but eligibility for
Other bills would expand financial and technical assistance
federal crop insurance limits the time period to 5 years.
for certain producer groups (e.g., requiring USDA to raise
SDFR status also depends on the program. In general,
beginning, veteran, and SDFR participation in farm-to-
USDA defines SDFRs as belonging to the following race
school programs; H.R. 1768/S. 1328). Some bills would
and ethnic groups: African Americans, American Indians,
expand USDA programs or establish set-asides for
Alaskan Natives, Asians, Hispanics, Pacific Islanders,
beginning, SDFRs, and other underserved producers to
refugees, immigrants, and groups as determined by the
support agricultural resiliency related to climate change
Secretary of Agriculture. USDA regulations further define
(H.R. 2803/S. 1337, H.R. 2534/S. 1072) or provide other
eligible entities under some programs to include 1890
types of emergency relief (H.R. 1798). Other bills would
Institutions (historically Black land-grant colleges and
provide additional training, support, and opportunities for
universities), 1994 Institutions (Alaska Native and
veteran and other beginning producers (H.R. 5354/S. 2812,
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Farm Bill Primer: Beginning and Underserved Producers
H.R. 4552, H.R. 6003, H.R. 2789) and expand disabled
authority for Indian Tribes, including addressing potential
veterans’ eligibility to receive supplemental nutrition
barriers to implementing USDA’s food and nutrition
assistance benefits (H.R. 7272).
programs and certain land use policies.
Congress may consider these and other policy and program
More Information in Other CRS Reports
changes in the next farm bill. Topics may include expanded
support for beginning and small/mid-sized farms, including
CRS In Focus IF11093, 2018 Farm Bill Primer: Veteran
Farmers and Ranchers
creating additional income opportunities, providing more
equal access to USDA programs and resources, and
CRS In Focus IF11227, 2018 Farm Bill Primer: Beginning
facilitating entry to farming and transition to sustainable
Farmers and Ranchers
and organic agricultural practices. Other issues may relate
CRS In Focus IF11287, 2018 Farm Bill Primer: Support for
to whether to amend the statutory definition of veteran
Indian Tribes
producers. The current definition generally restricts benefits
CRS In Focus IF11210, 2018 Farm Bill Primer: Support for
to those engaged in farming during the past 10 years.
Urban Agriculture
Congress may consider ongoing efforts to expand racial,
CRS Report R46727, Defining a Socially Disadvantaged
ethnic, and gender equity in USDA’s delivery of services
Farmer or Rancher (SDFR): In Brief
and support. Topics may include if and how to amend
CRS Report R47066, Racial and Ethnic Equity in U.S.
USDA programs to address historical discrimination of
Agriculture: Selected Current Issues
underserved producers and provide more equal access to
CRS memoranda (available upon request from author):
assistance. Related debate may include loan forgiveness and
Selected USDA Programs and Policies that Address Beginning
access to credit for certain targeted producer groups. Other
and Historically Underserved Producers; and Selected USDA
topics may involve prioritizing underserved producers in
Programs and Policies that Address Indian Tribes
competitive grant programs and increasing investment in
Historically Black Colleges and Universities, Hispanic
Serving Institutions, and Tribal Colleges and Universities.
Renée Johnson, Specialist in Agricultural Policy
Congress also may consider expanding self-governance
IF12096
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